Google Closes YouTube Acquisition

Next Story

Google Takes Out Ajax Spreadsheet iRows

Google announced today that they have completed the previously announced acquisition of YouTube.

The final price included $15 million in cash, 3,217,560 shares of Google Class A Common Stock, along with an additional 442,210 shares of restricted stock and warrants. The number of shares was determined by dividing the acquisition price, $1.65 billion, by an average value of Google stock over the last thirty days (this is a standard way of handling public company acquisitions). 12.5% of the stock is being held in escrow for one year.

Based on today’s closing price of $481.03 per share, the deal is already worth $1.775 billion to YouTube’s shareholders.

MOUNTAIN VIEW, Calif., November 13, 2006 – Google Inc. (NASDAQ: GOOG)
announced today that it has closed its acquisition of YouTube, the
consumer media company for people to watch and share original videos.
In connection with the acquisition Google issued an aggregate of
3,217,560 shares, and restricted stock units, options and a warrant
exercisable for or convertible into an aggregate of 442,210 shares, of
Google’s Class A common stock. The number of shares of Class A common
stock issued and issuable by Google was calculated by dividing $1.65
billion less certain amounts (approximately $15 million) funded to
YouTube by Google between signing and closing by the average closing
price for the 30 trading days ending on November 9, 2006. 12.5% of
the equity issued and issuable in the transaction will be subject to
escrow for one year to secure certain indemnification obligations.

“We are excited to have closed the acquisition in order to begin
collaborating to offer the best in quality and depth of content, user
experience and new business opportunities for our partners,” said Eric
Schmidt, Chief Executive Officer of Google. “YouTube and Google will
together provide innovative and exciting services for our users that
will add a new dimension to on-line media entertainment. We look
forward to working with content creators and owners large and small to
harness the power of the internet to promote, distribute and monetize
their content.”

“Google’s expertise, technology leadership, and resources will provide
us with the flexibility to innovate and build the best, most
entertaining service on the Internet. In the coming months, we will
roll out many new exciting features and programs to benefit the
creativity and participation of our community,” said Chad Hurley, CEO
and Co-Founder of YouTube. “The community will remain the most
important part of YouTube and we are staying on the same course we set
out on nearly one year ago. We will continue to gather and listen to
its feedback and are looking forward to the many opportunities that lie
ahead.”

blog comments powered by Disqus